Cisco Systems, Inc. (CSCO), The Procter & Gamble Company (PG): Two Bargain Stocks Worth the Risk

Additionally, it saw a 10% revenue drop in the first quarter, which is its worst sales drop since 2005. But who can blame Hewlett Packard? It operates in a low growth PC and printer business. For a company surrounded with uncertain growth prospects and burdensome debt, I think it’s more prudent to invest elsewhere.

Conclusion

Not all “clearance items” are created equal. Just as I look for holes and defects in the clothing on the clearance rack, it’s equally wise to be wary of issues surrounding companies with inexpensive share prices. If the firm’s financial data and business models check out, then by all means, dive right into that bargain bin. Otherwise steer clear of cheap merchandise.

Article by M. Michele Milheim, edited by Chris Marasco. Chris Marasco is Head Editor of ADifferentAngle. Neither has a position in any stocks mentioned. The Motley Fool recommends Cisco Systems (NASDAQ:CSCO) and Procter & Gamble. The Motley Fool owns shares of Apache.

The article 2 Bargain Stocks Worth the Risk originally appeared on Fool.com.

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